Which Are Two Conditions That Must Be Met Before Revenue

question 13

Multiple Choice

Which are two conditions that must be met before revenue is to be recognized under IFRS?

• A)Persuasive evidence of an arrangement exists and product or service can be delivered
• B)Product or service can delivered and collectability is reasonably assured
• C)Persuasive evidence of an arrangement exists and the market of the products or services are well regulated
• D)Seller's price to the buyer is fixed or determinable and collectability is reasonably assured

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Definitions:

Earnings

The amount of money that an individual or corporation receives in exchange for providing a good, service, or through investing capital.

Salaried Manager

An employee who receives a fixed amount of remuneration from their employer at regular intervals, typically monthly or annually, and often occupies a supervisory or managerial position.

Industrious Franchisee

A franchisee who demonstrates exceptional dedication and work ethic in managing and growing their franchised business.

Franchised Restaurant

A restaurant that operates under the branding and operational guidelines of a larger chain, typically through a licensing agreement.